www.nareshminocha.com

Font Size

SCREEN

Profile

Menu Style

Cpanel
 (Image Courtesy: taxindiaonline.com)
 
Policy Paralysis (PP) was one of the catch phrases that enabled BJP-led NDA to defeat Congress-led UPA in 2014 Lok Sabha polls. Has PP ended? 
The answer is both Yes and No. Yes because there has been modest increase in policy decisions taken by NDA. Couple this with terrific marketing of repackaged schemes and policies. NDA’s performance is thus slightly better than UPA’s.
And no because Comptroller and Auditor General (CAG) reports, presented during the winter session and earlier, show that bad governance continues to rock as it did under the UPA. Certain indicators, in fact, imply that misgovernance has risen under the Modi Government.
Anyone can arrive at this conclusion by comparing the observations, conclusions and recommendations made by CAG every year in its reports on different ministries. Three years is adequate period to judge ruling alliance’s passion or aversion for policy paralysis.  
If continuation of same errors, same indifference, same revenue leakages, same fiscal opacity and same deficiencies under NDA is not policy paralysis, then what it is? 
Government’s inability to reform its functioning in the light of quality audit by CAG is worrying. The persisting PP should attract the attention of Prime Minister Narendra Modi. He himself had once cited CAG reports in Lok Sabha to articulate governance deficiencies in previous Government. PM also suggested that MPs should do research to enrich debates in Parliament. The best way to do research on governance is study official record including CAG reports.  
The Nation would be grateful to PM if he facilitates discussion on identical or similar observations and conclusions made in latest CAG reports and previous ones. Should he not hold some ministers and officials accountable for indifference towards CAG reports? 
For the sake of ease of doing research, we can take up CAG report on ‘Union Government Accounts of the Union Government No. 44 of 2017 (Financial Audit)’ that was released on 19th December 2017. Compare its content with the observations and conclusions made in CAG report on same subject for the previous year.  
The latest report says: “Opaqueness was noticed in 35 Major Heads relating to expenditure and receipts wherein more than 50 per cent of total expenditure and receipts under these heads were recorded under minor head 800-Other Expenditure/Other Receipts”.
The previous year’s report says: “Opaqueness was noticed in 32 receipts and expenditure Major Heads wherein more than 50 per cent of total expenditure and receipts were recorded under minor head 800-Other Expenditure/Other Receipts”.
See fiscal opacity has increased under Modi Government in spite of CAG’s sage observations! 
Anyone can see stark similarity in CAG’s findings on other accounting heads such as Secondary and Higher Education Cess (SHEC). The latest report says: “The Secondary and Higher Education Cess (SHEC) was introduced in the Finance Act, 2007, to fulfill the commitment of secondary and higher education. Scrutiny of the Union Finance Accounts for the period 2006-07 to 2016-17 revealed that a total collection of SHEC of Rs 83,497 crore has been made and is being credited in the CFI (Consolidated Fund of India) without creating any reserve fund in Public Account”.
The Report continues: “Unlike the creation of Prarambhik Siksha Kosh in the case of primary/elementary education cess, for the SHEC neither a Fund was designated to deposit the proceeds of SHEC nor were schemes identified on which the cess proceeds were to be spent. Consequently, the commitment of furthering Secondary and Higher Education Cess as envisaged in the Finance Act was not transparently ascertainable”.
The report adds: “The matter of non-creation of Fund and non-identification of schemes was raised in previous years’ Report but the trend is persistent”.
How is it that identical/similar observations in previous year’s report didn’t perturb Modi Government, which came to power on promise of good governance?
Consider now National Clean Energy Fund (NCEF). CAG has made similar observations in the reports for both the years. The reports show that the shortfall in transfer of cess to “earmarked fund” has increased to 71.31% in 2016-17 from 67.62 per cent in preceding year.
The latest report concludes: There are significant deficiencies relating to disclosures, accuracy, completeness, and transparency in the Union Finance Accounts for 2016-17. Many of these discrepancies are recurring without any noticeable corrective actions taken by the concerned accounting authorities though commented upon in previous Audit Reports. Several Regulatory Bodies acting as ‘State’ within the meaning of the Constitution of India, maintained large amount of funds outside the Government  Accounts. Specific purpose cess being collected was not credited to the earmarked funds whenever created in the Public Account”.
One can read the same conclusion verbatim in last year’s CAG report on ‘Union Government Accounts of the Union Government No. 34 of 2016 (Financial Audit)’ presented on 16th December 2016.
Yet another indicator of worsening policy paralysis is the increase in unutilized external debt, which has increased from Rs 216,083 in 2013-14 (last year of UPA regime) to Rs 254,779 crore in 2016-17. The commitment charges on the unutiized aid has increased from Rs 117.33 crore to Rs 121.81 crore during the same period. 
Referring to record payment of commitment charge in 2016-17, CAG notes: “This points towards continued inadequate planning, resulting in avoidable expenditure on commitment charges”.
There are several more cases of similarity in CAG’s observations in two reports. 
Turn now to CAG report on ‘Union Government Department of Revenue – Direct Taxes Report No. 40 of 2017’ presented to Parliament on 19th December 2017.
Referring to “persistent and pervasive irregularities in respect of corporation tax and income tax assessments cases over the years,” the report says: “Recurrence of such irregularities, despite being pointed out repeatedly in the earlier Audit Reports points to structural weaknesses on the part of Department as well as the absence of appropriate institutional mechanisms to address this”. 
According to the Report, “The arrears of demand increased from Rs 8.2 lakh crore in FY 2015-16 to Rs 10.4 lakh crore in FY 2016-17. The Department indicated that more than 98.6 per cent of uncollected demand would be difficult to recover”.
If there is no policy paralysis, then why and how have overdue taxes risen? Why have arrears of demand not been brought down or written off?
To conclude, Modi Government should end policy paralysis as judged from its indifference towards CAG reports. It should treat CAG reports as stepping stones to good governance
 
published by taxindiaonline.com on 25th December 2017

Add comment


Security code
Refresh

Comments   

 
0 #177 Grow Faster 2018-05-20 17:23
Asking questions are in fact fastidious thing if you arre not understanding anything totally, but this post gives good understanding even.

My web blog :: Grow Faster: https://bit.ly/2Is2FRs
Quote
 
 
0 #176 Eye Lashes 2018-05-20 12:30
Hello, I do think your website might be having browser compatibility issues.
Whenever I look at youir blog in Safari, it looks fine but
when opening in IE, iit has some ovrlapping issues.
I just wanted to give you a quick heads up! Apart from that, wonderful site!


My web-site; Eye Lashes: https://bit.ly/2Is2FRs
Quote
 
 
0 #175 eyelashes growth 2018-05-20 09:32
I loved as much as you will receive carried out riught here.
The sketch is tasteful, your authored material stylish.
nonetheless, yyou command get bought an nervousness over that you wish be delivering the following.
unwell unquestionably come more formerly again since exactly the same nearly very often inside case
you shield this increase.

Visit my blog eyelashes growth: https://bit.ly/2Is2FRs
Quote
 
 
0 #174 eyelashes Ticker 2018-05-19 04:45
It's fatastic tht you are getting ideas from ths piece of writing as well as from our discussion made here.


Also visit my site :: eyelashes
Ticker: https://bit.ly/2Is2FRs
Quote
 
 
0 #173 Eyelashes Growth 2018-05-19 01:35
Good post! We are linking to this great article on our website.
Keep up the great writing.

Also visit my web blog - Eyelashes
Growth: https://bit.ly/2Is2FRs
Quote
 
 
0 #172 Eyelashes ticker 2018-05-19 00:13
My brother syggested I would possibly like this web site.
He was once entirely right. This publish truly made my day.
You can noot consider simply howw much time
I had spenjt for this info! Thanks!

Feel free to visit myy web site Eyelashes ticker: https://bit.ly/2Is2FRs
Quote
 
 
0 #171 eyelashes ticker 2018-05-18 17:27
hello here and tgank you for your info – I have
definitely picked up anything new from right here.
I did however expertise some technical issues using this website,
as I experienced to reload the site a lott of times previous to I
could gett it tto load properly. I had been wondering iif your hosting is OK?
Nott that I aam complaining, butt slow lokading instances tines will sometimes
affect your placement in google and could damage your
quality score if advertising and marketiung with Adwords.

Well I am adding this RSS to my e-mail and could look out for a
lot more of your respective exciting content.
Ensure that you update this again soon.

Also visit my web site ... eyelashes ticker: https://bit.ly/2Is2FRs
Quote
 
 
0 #170 Eyelashes Growth 2018-05-18 02:03
WOW just what I was looking for. Caame here by searching for results
framework document (RFD)

Feel free to visit my webpage :: Eyelashes Growth: https://bit.ly/2Is2FRs
Quote
 
 
0 #169 eyelashes 2018-05-17 14:40
I love it whenever people come together and share opinions.
Great site, continue the good work!

my web page - eyelashes: https://bit.ly/2Is2FRs
Quote
 
 
0 #168 Eyelashes growth 2018-05-17 09:47
I wwas wondering if you ever thought oof changing the page laout of your website?
Its very well written; I love what youve got to
say. But mayne you could a little more in the way of content so people couuld connect with it better.
Youve got an awful lot off text ffor only having onee or 2 pictures.
Maybe you could space it out better?

Reviiew my site :: Eyelashes growth: https://bit.ly/2Is2FRs
Quote
 
 
0 #167 Grow Faster 2018-05-16 06:59
If some one needds to be updated with most recent technologies afterward he must be pay
a visit this site annd be up to date every day.

My blog: Grow Faster: https://bit.ly/2Is2FRs
Quote
 
 
0 #166 Grow Faster 2018-05-16 00:59
fantastic points altogether, you just gainbed a emblem new reader.
What may you recommend about yor publish that you
jst made a few days in the past? Any certain?

Feel free to surf to my web page :: Grow Faster: https://bit.ly/2Is2FRs
Quote
 
You are here: Home Governance The Rulers’ Indifference Towards CAG reflects Policy Paralysis